Answer:
As the variable cost increased by $2.10 per book so if publisher wants to start making profit at same level of production then it should increase the selling price of the book by $2.10. As the increase in cost and selling price will be same so the publisher will also start making profit at same production level.
Answer:
The dividend the company just paid is $3.53
Explanation:
The solution to the problem is given as follows.
$48.20 = D1/(.1120 − .0360)
$48.20= D1(0.076)
Making D1 the subject of formula we have.
D1 = $3.66
D0 = $3.66/(1 + .0360)
D0 = $3.53
Answer:
The account balance by the end of year 3 will be : $5,283.2
Explanation:
You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.
The account balance at the end of year 1 = $2,000
The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080
The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2
Answer:
The correct answer is: 8.72%
Explanation:
Cost of debt K d = I (1 – t) + (-pi)/n
(SV + RV)/2
= 80(1 – 0.40) + (-75)/25
(1,000 + 1,075)/2
= 0.043 or 4.3%
Cost of equity K e = R f + b (R m – R f)
R m – R f = 5.5% = market risk premium
R f = risk free rate = 4.5%
B = beta = 1.2
K e = 4.5% + 1.2(5.5%)
= 11.1%
WACC = W d * K d + We * K e
= 35% * 4.3% + 65% * 11.1%
= 1.505 + 7.215
= 8.72%
Answer:
Investment banks.
Explanation:
Investment banking is the financial service described in the paragraph, could be a company or a division of it, dedicate it to give advisory about financial transactions, raising capital, even-though restructuring and mergers activities.